India’s Biodiesel Programme: promises and … Files/A0801/0103.pdfIndia’s Biodiesel Programme: promises and challenges Varghese Paul Fellow, Forestry and Biodiversity TERI, New

The Energy and Resources Institute

25 years of Excellence in Research and Innovation

India’s Biodiesel Programme: promises and challenges

Varghese PaulFellow, Forestry and BiodiversityTERI, New Delhi

Regional Forum on Bioenergy Sector Development: Challenges, Opportunities, and the Way Forward

23-25 January 2008, BangkokUNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE

PACIFIC, ASIAN AND PACIFIC CENTRE FOR AGRICULTURAL ENGINEERING, AND MACHINERY (APCAEM)



Structure of the presentation

India’s Energy ScenarioBiofuel Programme

Biodiesel programme

Critical IssuesRecommendations



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USA China RussianFederation

Japan India Germany Canada France UnitedKingdom

SouthKorea

Brazil

India is the Fifth Largest Energy Consumer

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Source: BP Stats 2005

2004

India’s Energy Scenario



India’s Energy Scenario(cnt’d)

Indian economy is projected to grow 8-10% in the next two decades.

Energy requirement to grow from 0.33 BTOE in 2003/04 to 1.35 BTOE in 2031/32

Increased Oil dependency At present more than 90% demand (transport sector) being met by oil.2003-04: 70 % oil requirement met through importsBy 2030 - 94% dependent on oil imports

Alternate options: biofuels





Biodiesel programme




Why Biofuels?

Environmentally superior fuel ?

Energy security

Reduced imports

Potential for employment generation

Biofuel Programme

Committee on Biofuels in April,2003 recommended:

Ethanol from sugarcane (molasses) for blending with petrol (gasoline)

Biodiesel (Jatropha curcas) for blending with High Speed Diesel.

Non-edible tree borne oil seeds



Biodiesel Programme

National Biodiesel MissionBased on JatrophaFirst Phase (2003-2007)

Demonstration phase: covering 0.4 mha. Expected to be completed by 2006-07.

Second Phase (2007-12)Self-sustaining expansion phaseProduction of bio-diesel necessary for 20% blend by the year 2011-12.Plantation in 11 mha of wastelands

Programme not backed by adequate policy and finances



Biodiesel Programme (cnt’d)

National Biodiesel Purchase Policy in October 2005

National oil companies to purchase biodiesel at specific centres at Rs 25 ($.63)5 % blending Current production cost:~Rs 40 ($ 1)



State level initiatives

Wide variation in policy provisions, institutional mechanism, target land

Minimum support price for seeds in some statesSubsidy on planting material Revenue wastelands Vs Forest wastelandContract farming, forest committees





Biodiesel programme




Lack of standardized package of practices

Cultivation practices not backed by adequate researchSpacing

Irrespective of soil conditions, intercropping standard spacing of 2 x 2 m or 2.5 x 2.5 are recommended

IrrigationJatropha requires irrigation for better fruiting and seeding

FertilizerIs it desirable?Role of biofertilizer

Pruning protocolPruning is essential: but how much to prune?



Wide variation : yield and oil content

Reference Type of data Reported yield on maturity

Agro-forestry Federation, Nashik (Patil and Singh 2003)

Primary data from block plantations 1.0-1.2 tonne/ha.

Estimates for poor soil (Kutch) 1.6-2.5 tonne/ha. Planning Commission, 2003 Estimates for average soil 3.3-5.0 tonne/ha. Becker and Francis Estimates for poor soils with low

nutrient content 1.5-2.0 tonne/ha.

TERI (2005 a) Estimates for rain-fed and irrigated conditions

3.0-5.0 tonne/ha.

Yield

Oil content varies from 21-42 %Large number of nurseries mushrooming:poor quality

planting material reaching farmer’s field



High production cost

Variables that have strong effect on production cost

Seed procurement price (Rs 6-9/kg)Selling price of de-oiled cake(Rs 2-6/kg)Selling price of glycerol (Rs 10-60/kg)Scale of production: direct effect on investment as well as efficiency

Production costBio-diesel: Rs 15.50 – 40/litreSVO: Rs 11-30/litre

1$=Rs 40

Source: TERI, 2005



Overemphasis on one feedstock

Perceived advantages of JatrophaEasy propagationWide adaptabilityHigh yield ?Low requirement of water ?Pest Resistance?

Large scale monoculture not desirablePests and diseasesBiodiversity

Other TBO’s like Pongamia (Pongamia pinnata) , Paradise tree (Simarouba glauca) and Salvadoraoleoides.

Need to bring down gestation period through breeding programme



Comparison of Jatropha and PongamiaCharacteristics Jatropha PongamiaEcosystem Arid to semi-arid Semi-arid to sub-humidRainfall Low to medium (200-1000 mm) Medium to high (500 – 2500 mm)

Soil Well drained soils Tolerant to water logging, saline and alkaline soils

Nitrogen fixation Not a nitrogen fixer Fixes Nitrogen

Plant suitability Wastelands, degraded lands, live fence for arable lands, green capping of bunds, shallow soils

Field boundary, nala bank stabilization, wastelands, tank foreshore

Plant habit Mostly bush, can be trained as small tree

Tree can be managed as bush by repeated pruning

Leaves Not palatable by livestock Not palatable by livestock, used as green leaf mulch

Gestation period Short, starts yielding during 3rd Year, attains maturity at 6th Year

Long, starts yielding after 4th to 7th year. Yield increases with increase in canopy.

Harvest Fruits to be plucked Fruits to be collected

Oil content 27-38% in seed 27-39% in kernel

Protein 38% 30-40%Oil cake As manure (4.4% N, 2.09 P, 1.68% K) As manure (4.0% N, 1.0% P, 1.0% K)

Fire wood Not useful Good as firewood, high calorific value 4600 K cal/kg



Is wasteland the right choice?

Whether yield estimates are realistic ?NMB’s calculations are based on average yield estimate of 3.75 tonnes of oil seed/ha/yearUnder unirrigated conditions yield could be as low as 1.25-1.5 tonnes/ha/year

Land area required for 20 % blend increases from 11 mha to 28 mha



Is wastelands the right choice? (cnt’d)

Out of 64 mha of wastelands, 40 mhaconsidered suitable for JatrophaCompeting demand for wastelands

Increasing forest cover: additional 31 mharequiredBamboo missionEncroachment

Getting adequate quantity of wastelands might be difficult



Impact on forest conservation

Competition for land use with forestry activities

WastelandsDegraded forest lands

Planting Common Property Resources with Jatropha would result in diversion of pressure to forest lands for meeting fuelwood, fodder, fibre and timber requirements

CPRs provide 12-25 % of the household income in rural areas


2

Benefits from Carbon trade:an expectation not realized

Carbon sequestrationUncertainty over Jatropha reaching tree height (5m) as per Indian definition of forestsPruning reduces effective biomassLow density : 0.22-0.37 Effective sequestration would be low: 1.05 tonneC/ha/year

Replacement of fossil fuel with biofuelsPotential, but methodological constraints





Biodiesel programme




Need for a Comprehensive R&D Programme

Breeding programme to produce high yielding varieties with high oil content

Non-toxic cakeBreeding programmes to reduce gestation period, especially for long gestation crops like Pongamia. Development of varieties that can tolerate adverse conditions

Development of package of practices like optimum spacing under various agro- climatic conditions, quantum of inputs needed like irrigation, fertilizers, pruning protocol



Targeting both agricultural land and wasteland

Agricultural landModels

Along bundsIntercropping

Minimum spacing of 5 x 2 m

No block planting

Can learn from successful farm forestry models Food security?



Regulating Nurseries

Certification of seeds/planting materialEstablishment of nurseries: a regulatory mechanism need to be in place



Farmer-industry tie-up

R &D activities by private sectorContract farming

with buy-backprovides seedlings, other inputs, microcredit, technical back up

with out buy backsale of high quality seedlings to farmers

Successful examples from paper and pulp industry and matchstick industry



And finally…

Need for a comprehensive

Land use policy

Biofuel policy



Thank you…

Documents

India’s Biodiesel Programme: promises and … Files/A0801/0103.pdfIndia’s Biodiesel Programme: promises and challenges Varghese Paul Fellow, Forestry and Biodiversity TERI, New